Kenya Daily Report 24 June 2025: Umeme Declares A Dividend Of Ksh 7.99 Per Share

The market closed the session in the green with the NASI, N10, NSE 20, and NSE 25 gaining 1.2%, 1.3%, 0.6%, and 0.9%, respectively.

Equity turnover more than doubled to USD 2.4m (+111.7% % %). Local investors dominated market activity, accounting for 70.7% of the turnover levels, down from 93.9% yesterday.

Safaricom dominated market activity, accounting for 42.8% of the day’s turnover. The counter’s price function inched upwards by 0.6% to KES 24.05.

Of the top traded banking stocks, KCB Group, Co-op, and Equity Group rose by 1.0%, 2.1%, and 0.8% to KES 44.00, KES 17.00, and KES 46.50, respectively. EABL rose by 4.6% to KES 189.50.

Umeme, the session’s top gainer, advancing by 55.9% to KES 19.25 on the announcement of its c. KES 7.99 interim dividend. Jubilee shed 9.4% to KES 213.00, closing as the leading laggard.

Foreign investors turned bullish, with net inflows of USD 430.1K. Safaricom led the buying charge while KCB group the selling charge.

In other news:

The board of directors of Umeme has declared an interim dividend of UGX  222 per ordinary share (c.  KES 7.99 per ordinary share) with a dividend yield of c. 67.2%. The dividend will be paid on or before 31st July 2025 to shareholders on the register by the book closure date of 14th July 2025.

The quantum paid is c. USD 100.9m – 85.3% of the USD 118.4m already paid by the Ugandan Government following the end of the concession. This comes in line with our views that;

There is a case for a portion of the buyout proceeds being settled ahead of the completion of the buyout arbitration process.

Part of the USD 118.4m already settled will be used to pursue closeout activities for the concession, as well as pursuing the disputed amount.

In full consideration of the interim dividend, c. USD 309.06m (c. KES 24.74) is the best-case scenario of the value yet to be unlocked following the arbitration – which we think management has the upper hand in the interpretation of the buyout amount. We thus maintain a BUY recommendation, as the proposition to risk-on investors remains compelling.

Notice of suspension is given for TransCentury PLC and East African Cables PLC shares following the placement of TransCentury PLC under receivership and East African Cables PLC under administration and the appointment of Messrs. George Weru and Muniu Thoithi of PricewaterhouseCoopers Limited as joint receivers and managers effective June 20, 2025.

Read Also: Umeme: Farewell To The Concession, Hello To Arbitration